3 Cheap Growth Stocks

It's hard to find bargains in a market where even "value" stocks are pricey, but these companies look undervalued relative their high-octane growth rates.

The stock market's bargain bin has been picked nearly clean. Just a dozen stocks in the Standard & Poor's 500 have price-to-earnings ratios in the single digits. A year ago there were 41. A year before that, there were 154.

Rather than settle for the handful of deep-value stocks on offer, investors should consider paying higher prices for companies with much better growth potential. Peter Tuz, president of Chase Investment Counsel and co-manager of the Chase Growth Fund (ticker: CHASX), cites three he has been buying...